Cyber risk accumulation: what does it mean?

In this IIL cyber webinar, Souki Chahid talks about cyber accumulations, the reasons why it matters, the challenges cyber players face while trying to quantify it and the potential tools and solutions to help cyber writers gain comfort with the risk.

Description

Cyber risk accumulation is currently an increasing challenge to the (re)insurance industry. Whether it is down to identifying what cyber risk accumulation looks like, where it starts/ends, the number of companies it may affect or the magnitude of losses, cyber writers are continuously hunting for ways and tools to answer these questions.

This is particularly important in an industry that has known significant growth over the past couple of years. Furthermore, there are little to no cyber events that hit the (re)insurance industry, this makes the estimation of the cyber losses (from a frequency and severity standpoint) difficult which in turn affects the underwriting function. To help the market address these challenges, the speaker goes through what worked well and what didn’t work so well in terms of risk assessment, risk management and risk quantification.

With regards to the quantification of the cyber risk accumulation, there are currently three vendor models that offer a platform to estimate the losses that might emerge from different cyber scenarios/events. These vary greatly but this divergence provides insightful information around a suitable approach to quantify systemic cyber underlying a given set of exposures.

Learning objectives:

• What cyber risk accumulation is
• The challenges faced by the market in relation to systemic cyber
• The tools and models available to the market to quantify systemic cyber
• The difference between the different models

Speaker

• Souki Chahid, Head of Cyber Analytics UK & International, Guy Carpenter